Frequently corporate employees receive confidential information, that is, information that is material and has not been made available to the public. Those employed in the finance department of a company frequently learn about the firm financial results, for example, before
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This Week In Securities Litigation (Week of June 27, 2022)
While the Commission continued to focus on conflicts in filing new actions, this time they did not center on an investment adviser. Rather, it was the Dodd-Frank provisions governing NRSROs. There Congress warned about the conflicts inherent in the process…
Ratings Firm Egan-Jones Sanctioned by SEC
Conflicts of interest are often the predicate for a finding of liability under the securities laws. For example, many of the cases brought against investment advisers are based on the failure to fully disclose a conflict of interest by the…
This Week In Securities Litigation (Week of June 20, 2022)
The Commission continued to challenge the markets and investors this week. Despite the significant number of proposed new regulations announced this year, Chair Gensler offered the prospect for more reform. His recent remarks on market structure offer the promise of…
Robo Advisers And Conflicts of Interest
Conflicts of interest are a key issue for investment advisers and others. The Commission has brought a number of actions alleging that investment advisers failed to disclose conflicts which could impact clients. For example, the agency filed a series of…
Injecting Transparency & Competition into Equity Markets
The Commission’s rule writing calendar may be about to have a meltdown. The agency is considering a number of significant rule writing-proposals covering important areas. A number of those proposals are controversial, covering climate disclosure and ESG. Nevertheless, Chair Gensler…
This Week In Securities Litigation (Week of June 13, 2022)
Two items dominated the news this week. One involves the new crypto asset bill crafted on Capital Hill. That bill proposes a new regulatory path for the industry largely under the CFTC. The second is the remarks of SEC Chair…
SEC Files Financial Fraud Actions
Many of the financial fraud actions filed by the Commission are based on restatements of the financial statements. Under those circumstances the company must admit that material errors have occurred when the restatement is prepared and filed. Essentially the restatement…
The SEC and ESG
Climate and ESG have become key topics of conversation at the SEC. The Commission’s publication of proposed rules for public companies which would require that certain climate related information be disclosed by issuers sparked what has become a continuing debate…
This Week In Securities Litigation (Week of June 6, 2022)
The Commission continues to focus on the environment. Last week the agency added another proposed set of rules. This time the proposals do focus on ESG, requesting that advisers and funds disclose their practices regarding certain broad areas and strategies…